From today's Boston Globe: "Hundreds of millions of dollars the state has provided to local school districts to improve classroom education has instead been gobbled up by soaring health care costs for school employees, according to a new report that questions whether Massachusetts has fulfilled the ambitious goals of its 1993 education reform law."

This is just another example of the urgent need for Plan Design, so that vital government functions -- such as education -- are not held hostage by the intransigence of municipal sector unions refusing to allow their members to be moved into more economical health insurance plans such as the state GIC.

Also I have to take issue with this quote from the president of the Massachusetts Teachers Association: "In general, public employee have accepted lower salaries in exchange for better benefits." The median household income in Massachusetts in 2009 was $65,304.  The average teacher salary in Massachusetts in 2008-2009 was $67,577. That means that the average teacher earned more than most Massachusetts households last year. And of course that does not include the extremely generous health insurance or guaranteed pension.

I do not think it helps the broader policy debate to have the union president make statements that are at odds with the facts.


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